Navigating the Future: Insights from Kyndryl’s 2024 Readiness Report
In an era where technology is the backbone of business operations, Kyndryl has unveiled its 2024 Readiness Report, presenting a paradox that many global business leaders face. While a staggering 90% of executives believe their IT infrastructure is top-tier, only 39% feel it is adequately equipped to handle the evolving risks of the future. This report, powered by insights from Kyndryl Bridge—an AI-driven digital business platform—sheds light on the intricate challenges of IT modernization, AI integration, and talent management across various industries.
India Leads in AI Adoption, But Skills Gap Persists
India has emerged as a frontrunner in the global landscape of AI adoption, with 85% of business leaders actively investing in artificial intelligence technologies. This commitment has translated into impressive returns, as 51% of Indian businesses report positive outcomes from their AI initiatives, significantly outpacing the global average of 42%. However, despite these advancements, a notable 27% skills gap in AI talent remains a significant hurdle. This shortage of skilled professionals limits the ability of Indian companies to fully harness the potential of AI, even as they race ahead in innovation.
Moreover, while India reports a 10% skills gap in data science and analytics—lower than the global average of 15%—business leaders recognize this as a critical area requiring attention to maximize the benefits of AI.
Global IT Readiness Concerns
Globally, business leaders are grappling with the pressing challenge of IT modernization. The Kyndryl Readiness Report reveals that while 94% of respondents acknowledge technology modernization as a high priority, a staggering 44% of mission-critical IT infrastructure is either approaching or at its end-of-life. This aging technology increases vulnerabilities, posing significant risks to companies striving to build future-ready systems.
Among Indian respondents, 88% believe their IT infrastructure is best-in-class, yet only 44% feel it is prepared to manage future risks. This sentiment aligns with the global trend of under-preparedness for upcoming challenges.
Talent and Risk Management
Interestingly, India ranks first globally in business leaders’ readiness to manage future cybersecurity and resiliency risks, with 40% expressing confidence in their capabilities. This strong showing can be attributed to India’s vast labor pool, which helps address talent gaps more effectively than in other regions. Additionally, 44% of Indian business leaders feel prepared to tackle talent deficits, positioning India as a leader in this area.
Challenges in Employee Training and Regulatory Compliance
Despite India’s strong performance in AI adoption and IT readiness, significant gaps remain in employee training and regulatory compliance. India ranks 15th globally in employee training investments, with only 25% of business leaders focusing on talent development programs, compared to the global average of 31%. Regulatory compliance efforts also lag, with just 23% of Indian businesses prioritizing this area, falling below the global average of 29%.
This lack of focus on training and compliance has become a considerable barrier to achieving full readiness, especially as 59% of Indian business leaders believe that the pace of regulatory changes is accelerating too quickly.
Cybersecurity, Regulatory Changes, and Modernization Challenges
Cybersecurity remains a paramount concern for business leaders worldwide. Sixty-five percent of executives express worries about cyber-attacks, yet only 30% feel prepared to manage them. Additionally, 59% of business leaders are concerned about environmental and climate disruptions, but only 25% believe their systems are equipped to respond effectively.
Regulatory changes also loom large, with 48% of global respondents fearing the rapid pace of new regulations. However, 66% view these regulations positively, recognizing their potential benefits to overall business operations.
Despite these challenges, companies that have embraced IT modernization are reaping clear benefits. Over the past year, 85% of businesses reported improved efficiency, 71% noted greater innovation, and 60% experienced enhancements in employee and customer experiences. However, there remains room for improvement in areas such as data security, compliance, and sustainability, with only 34% reporting positive outcomes in these domains.
Kyndryl Bridge
The report also highlights the transformative potential of automation in IT operations. Current data from Kyndryl Bridge indicates that only 8% of IT issues are resolved through automation without human intervention. However, Kyndryl envisions that up to 30% of IT problems could be addressed through automation, potentially saving businesses billions in maintenance costs and minimizing downtime.
Roadmap to Readiness
Kyndryl’s 2024 Readiness Report emphasizes the necessity for businesses to balance technology investments with talent development. Being "people-ready" is just as critical as being "tech-ready." Organizations that foster collaboration between technology and business leaders are better positioned to navigate future challenges. CIOs and CTOs, in particular, must align with other C-suite executives to ensure the smooth adoption of new technologies and processes.
Investing in talent development, particularly in AI and cybersecurity, will be crucial for building a future-ready workforce. Additionally, addressing aging technology infrastructure and reducing tech debt will unlock greater opportunities for growth, innovation, and operational efficiency.
Conclusion
As businesses continue their digital transformation journeys, the 2024 Kyndryl Readiness Report provides a comprehensive roadmap to help them navigate the complexities of modernization. By aligning technology with talent, embracing automation, and addressing regulatory and cybersecurity concerns, companies can position themselves for long-term success in an increasingly competitive and rapidly evolving market. The insights from this report serve as a clarion call for organizations to not only invest in cutting-edge technologies but also to cultivate the talent necessary to drive innovation and resilience in the face of future challenges.